XRP Liquidation Pressure Eases, But Spot Buying Remains Key

The pressure on XRP traders to liquidate their positions has eased in recent weeks, according to an analysis by Cryptoquant.

Between late July and September, there were repeated spikes in liquidation on Binance, a major cryptocurrency exchange.

However, the number of forced position closures has decreased since then, indicating a reduction in liquidation pressure.

This shift follows a contraction in derivatives positions on Binance, with outstanding XRP derivatives positions decreasing by about 32% between August 22 and September 17, from roughly $323 million to $219 million.

The analyst noted that long liquidations appear to be higher than short liquidations, suggesting that long positions have been more heavily affected by recent downward price movements.